Sprint Fails To Turnaround Due To Widening Company Loss

Sprint Nextel Corp. reported substantial losses during the 1st quarter it offered Apple Inc. iPhone, implying the device might not be helpful for the turn-around of the carries business.

Last year, Sprint sold about 1.8 million iPhones, fewer than that expected by some analysts. Consequently, Sprint had to trail larger rivals including AT&T Inc. & Verizon Wireless. In addition to that, the device decreased Sprint’s margins by the increase of subsidy expenses by 40%. Sprint & competitors sell that device without profit for having the consumers signed up for the expectation of multiyear contracts.

“Due to the addition of iPhone in the 4th quarter, Sprint in along with AT&T and Verizon became the victim of Apple Inc.’s success,” said Craig Moffett, an analyst at the new York based Sanford Bernstein & Co. in his note to clients.

As the iPhone costs increased, Hesse failed keep his promise to reverse the 5-year decline in the contract subscribers for Overland Park, Kansas-based Sprint.

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